David’s Bridal Files For Bankruptcy, Will Lay Off More than 9,000 Workers
David’s Bridal filed for chapter 11 bankruptcy on Monday and will lay off more than 9,000 employees.
The bridal dress retailer has $257 million in debt, according to court documents, CBS News reported.
“We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class,” David’s Bridal CEO James Marcum said in a statement. “Nonetheless, our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward.”
CBS News reported:
David’s Bridal filed for bankruptcy on Monday just days after announcing plans to lay off more than 9,000 workers nationwide later this year.
The popular wedding dress retailer said its stores and e-commerce website will remain open during the financial restructuring process. David’s Bridal executives said they are trying to arrange a sale of the company. The Pennsylvania-based company, which filed for Chapter 11 bankruptcy protection, has $257 million in debt, according to court documents.
Founded in 1950, David’s Bridal sells mostly wedding dresses and prom gowns across 294 stores in the U.S., Canada and the United Kingdom. In court documents, David’s Bridal said roughly 1-in-4 U.S. brides got their wedding gown from the company and nearly 90% of brides visited the store’s website at least once during their wedding planning.
David’s Bridal plans to lay off 9,236 employees in three waves between April and August, according to a notice posted Friday on Pennsylvania’s Department of Labor. As of April, the company had about 10,000 employees — 2,000 full-time and 8,000 part-time. The company said in a statement Monday that some layoffs have already begun.
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Author: Cristina Laila